Growth and Business Model Dynamics

Abstract

Scalability and optimisation/improvement are pivotal concepts in contemporary business landscapes, particularly in the realms of technology and online platforms. Scalability involves the capacity of a company or its processes to handle growth efficiently, often tied to economies of scale and cost advantages per unit. Optimisation/improvement, on the other hand, focusses on enhancing effectiveness and efficiency in resource utilisation and operational processes. This chapter delves into the intricacies of scalability and optimisation/improvement, drawing on real-world examples from companies such as Salesforce, Dropbox, and Airbnb. It explores how these companies leverage scalability to expand their operations and customer base while optimising processes to achieve better performance metrics. Furthermore, the chapter introduces case studies illustrating contrasting approaches to scalability and the challenges they face. Culminating in a comprehensive guide to determining the degree of scalability, the authors offer actionable steps for companies to assess their scalability potential. By analysing factors such as current resources, cost structure, market demand, and technological leverage, companies can align their growth hacking strategies with their scalability objectives effectively.

Citation

Santoro, G. and Bargoni, A. (2024), "Growth and Business Model Dynamics", Beyond Growth Hacking: Mastering Business Model Evolution (Managing Innovation in Business Strategy, Marketing and Finance), Emerald Publishing Limited, Leeds, pp. 91-102. https://doi.org/10.1108/978-1-83608-442-620241014